Open Source in Finance Forum London 2025

The EU Artificial Intelligence Act represents a major regulatory milestone, embedding environmental sustainability into AI governance. It introduces principles for developing AI systems sustainably, mandates energy consumption logging for high-risk AI, and requires lifecycle environmental impact assessments. Key provisions emphasize green AI development, mandate tracking energy and resource use and enforce efficiency standards for foundational models. However, despite these advancements, the Act's final version leans on voluntary standards, limiting enforceability. It largely focuses on energy consumption, overlooking broader ecological concerns like water use, mineral extraction, and electronic waste. While gaps remain, the Act is a step toward sustainable AI, reinforcing the need for responsible innovation. Future efforts must strengthen enforcement to ensure AI development aligns with global environmental goals.